Oil & Gas Steers $58 Billion of Industrial Projects Under Development in Louisiana

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Researched by Industrial Info Resources (Sugar Land, Texas)--The recent uptick in hydrocarbon development and its accessibility as a cheap feedstock for the petrochemical sector is driving industrial project development in Louisiana. The state has 629 active industrial projects totaling $58 billion under development. These projects range from those in the early planning stage to those under construction. Energy-related projects, especially those in the Power, Refining and Oil & Gas and Chemical Processing industries, account for about 90% of the activity in the state.

Click on the image at right to view a chart showing the breakdown of project activity in Louisiana by industry.

Oil & Gas Production commands the largest amount of industrial project activity in Louisiana, with $16.7 billion worth of active projects. In order to take advantage of low natural gas prices, firms that own liquefied natural gas (LNG) distribution terminals on the U.S. Gulf Coast are planning several projects to liquefy and export natural gas overseas. Both Cheniere Energy Incorporated (AMEX:LNG) (Houston, Texas) and Sempra Energy (NYSE:SRE) (San Diego, California) are planning LNG liquefaction plants at existing LNG terminals near the coast in Southwest Louisiana.

The Chemical Processing Industry has the largest number of projects under development, with 280 totaling $9.6 billion. Leading fertilizer producer CF Industries Incorporated (NYSE:CF) (Deerfield, Illinois), which reported record first-quarter 2012 earnings, is planning significant expansion and upgrade projects at its nitrogen fertilizer complex in Donaldsonville, Louisiana. Industrial Info is tracking more than a dozen CF Industries projects totaling more than $1 billion in Louisiana. CF Industries continues to benefit from favorable natural gas prices. Natural gas is a prime feedstock for fertilizer production. The company expects about $400 million in capital expenditures in 2012 and is doing front-end design for between $1 billion and $1.5 billion in expansions and upgrades to existing North American plants over the next four years.

The Petroleum Refining Industry is second, with 126 projects totaling $4.4 billion. To help meet MSAT II regulations, Alon USA Energy Incorporated (NYSE: ALJ) (Dallas, Texas) is constructing a $50 million Reformate Splitter Addition at the Krotz Springs Refinery in Krotz Springs, Louisiana. L-Con Engineering and Constructors Company (Houston, Texas) is performing the engineering, procurement and construction management for the project that is scheduled for completion in early 2013. Industrial Info first began tracking this project in 2008. Construction began and was halted at the end of 2010 for economic reasons. Construction resumed in November 2011.

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Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.